3 Sneaky Financial Mistakes Entrepreneurs Make (and How to Fix Them)
Running a business? Don’t let these common pitfalls quietly drain your profits.
As entrepreneurs, we wear all the hats—CEO, marketer, customer service, and accountant (kind of). But let’s be honest—bookkeeping isn’t always at the top of our to-do list. And that’s exactly why small financial mistakes often slip by unnoticed… until they cost us big.
Here are 3 sneaky mistakes many business owners make—and simple ways to avoid them.
1. Mixing Personal and Business Expenses
The Problem:
Using the same bank or credit card account for personal and business spending leads to a messy, inaccurate paper trail. Come tax time, it’s hard to separate what’s deductible—and what’s not.
The Fix:
Open a dedicated business checking account and credit card
Never pay personal expenses from your business account
Reimburse yourself properly through owner draws or expense reimbursements
Use bookkeeping software (like QuickBooks Online) to track only business-related spending
2. Over-relying on Payment Apps Without Proper Tracking
The Problem:
Platforms like Venmo, PayPal, or Square may be convenient—but they often don’t sync cleanly with your bookkeeping system. This can lead to duplicate revenue, miscategorized fees, or missed deposits.
The Fix:
Review synced accounts regularly in QuickBooks or your bookkeeping platform
Reconcile payment processor reports monthly
Consider manual monthly entries if syncing causes too much chaos
Work with a bookkeeper to clean up errors and get it aligned
3. Not Reconciling Bank Accounts Monthly
The Problem:
If you’re not reconciling your bank and credit card accounts each month, you won’t catch errors, missing transactions, or fraud. This leads to inaccurate financial reports—and poor decisions.
The Fix:
Reconcile your accounts monthly in your accounting software
Compare your bank statements line-by-line with your ledger
Investigate any discrepancies immediately
If this overwhelms you, ask a bookkeeper to handle monthly reconciliations
FAQ
Q: What happens if I mix personal and business finances?
A: It makes bookkeeping messy, complicates taxes, and increases your audit risk.
Q: How do I track income from apps like Venmo or Square?
A: Either sync them carefully with your accounting software or enter deposits manually each month for accuracy.
Q: Why is bank reconciliation important?
A: It ensures your books match your actual bank balance, catching errors or missing transactions early.
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